Ross Stores Inc (ROST)

Operating profit margin

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Operating income	US$ in thousands	-795,896	-771,779	-615,929	-2,636,940	-192,416
Revenue	US$ in thousands	20,541,100	18,693,000	18,841,900	12,208,200	16,057,200
Operating profit margin		-3.87%	-4.13%	-3.27%	-21.60%	-1.20%

February 3, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-795,896K ÷ $20,541,100K
= -3.87%

The operating profit margin of Ross Stores Inc has fluctuated over the past five years. In the most recent fiscal year, ending on February 3, 2024, the operating profit margin was -3.87%, which reflects an improvement compared to the previous year's margin of -4.13%. However, this figure is still negative, indicating that the company's operating expenses continue to exceed its operating income.

Comparing the current operating profit margin to that of previous years, we can observe a general trend of instability in profitability. The margins for the fiscal years ending in January 2022 and February 2020 were relatively better at -3.27% and -1.20% respectively. In contrast, the operating profit margin for the fiscal year ending in January 2021 was particularly disappointing at -21.60%, suggesting significant challenges or one-time events impacting profitability during that period.

Overall, the negative operating profit margins imply that Ross Stores Inc is facing difficulties in generating sufficient operating income to cover its operating expenses. It is essential for the company to closely monitor and manage its cost structure, revenue generation, and operational efficiency to improve its profitability in the future.